We are discussing possible proposals with the other Departments mainly "concerned, and, subject to their agreement, we plan to try out our ideas on Sir Lawrence Kadoorie in the near future prior to putting an outline scheme to the Chinese. Officials from this Department will be travelling to Hong Kong for this purpose on 2 July.
Sir Lawrence Kadoorie has proved an invaluable friend to this country, not least in being instrumental in bringing us the order for the new power station. His initiative on counter-trade is also in principle to be welcomed. It would therefore be helpful if the Prime Minister would be ready to express his appreciation for Sir Lawrence's recent efforts and indicate his readiness to continue the relationship. However, we also. need to avoid giving him carte blanche to commit the United Kingdom to schemes entirely of his own devising. The success of any counter-trade scheme will depend on the willingness of British companies to participate in it, and it is important to avoid any possibility of upsetting other negotia- tions which British officials and companies are having with the Chinese. A draft reply in this sense for the Prime Minister to send to Sir Lawrence is attached.
I am copying this letter to Kieran Prendergast (Foreign and Commonwealth Office), Martyn Baker (Department of Trade), HM Ambassador in Peking, and Derek March (British Trade Commission, Hong Kong).
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Yours sincerely,
Голи мішо
JOHN MILLS
PRIVATE SECRETARY
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